The Republican Tax Scam
The Republican Tax Scam & Its Impact
The 2017 Republican Tax Scam was a massive tax giveaway that disproportionately benefited wealthy individuals and corporations. The law significantly cut the corporate income tax rate from 35% to 21%. This largely benefited wealthy shareholders and top executives, as corporations used the savings for stock buybacks and increased executive pay rather than raising wages for workers or lowering prices for consumers. Other provisions favoring the wealthy included reduced income tax rates, a new tax break for business income, and increased inheritance tax exemptions.
The law's impact is uneven, with an average tax giveaway of more than $60,000 to the top 1% in 2025, 120 times higher than the bottom 60%.
What Happens Now That the Republican Tax Scam Is Scheduled to Expire?
As most provisions of the law are set to expire after 2025, Congress will soon debate its extension or replacement. Extending the law would further benefit the wealthy at a cost of $4 trillion for American taxpayers, potentially leading to cuts in essential programs like Social Security and Medicare. A preferable alternative to extending these handouts is raising taxes on the wealthy and corporations while maintaining tax cuts for middle and low-income families.